The ANSWER is here

What is the difference between Franchise and a Business Opportunity?

    There are very important differences between Franchises and Business Opportunities. In simple terms, a franchise opportunity is a realtionship between a seller and a buyer that continues for the duration of the buyer's involvement in the business, A franchise differs from a business opportunity in two important ways:

    - A franchisor generally collects an"up-front" fee from the buyer but also collects on-going royalties in exchange for a proven business model. In a business opportunity, the buyer pays for the system or training, but does not have a further obligation, unless his contract specifies he buy inventory from the seller.

    - A franshisor, in order to protect the brand and ensure consistency of the product, requires strict adherence to specific guidelines. In a business opportunity, the buyer may learn a specific program but is not required to follow the system.

    Income expectations for a business opportunity may be lower than for a franchise opportunity, but they are also a lower investment than most franchises. A business opportunity may not require costly leasehold improvements or large working capital reserves, making it an option for many people whom may not have the capital available to purchase a franchise. For many buyers, a business opportunity provides the flexibility to start out as a supplemental income or home-based business, but has the potential to support their lifestyle and meet their financial goals..

    Which opportunity is better? The answer, obviously, is that it depends on the buyer. An enterpreneurial individual may find the confines of a franchise opportunity limiting and thrive in a business opportunity where he makes all the decisions. Another buyer may find the brand recognition, ongoing assistance, and company-wide marketing programs associated with a franchise just the safety net he needs to feel confident when starting a new career.



    1) Brand recognition
    2) Markeitng expertise

    3) Intensive training program

    4) Site selection management

    5) Ongoing support

    6) Security of proven processes



    1) No ongoing royalties

    2) Usually lower investment

    3) Company supplied advertising

    4) Intensive training program

    5) Site selection assistance

    6) Freedom to make choices

    7) Proven system of operation


Source: Business for Sales, Jul/Aug 2008's version, p. 13